(Translated by https://www.hiragana.jp/)
On the Theory of Exhaustible Resources: Ricardo vs. Hotelling
IDEAS home Printed from https://ideas.repec.org/p/dpr/wpaper/0756.html
   My bibliography  Save this paper

On the Theory of Exhaustible Resources: Ricardo vs. Hotelling

Author

Listed:
  • Heinz D. Kurz
  • Neri Salvadori

Abstract

The paper compares, and eventually combines, the approaches of Harold Hotelling and David Ricardo to the theory of exhaustible resources. It is argued that Hotelling and Ricardo had in mind worlds that differ in important respects. According to Ricardo the exploitation of deposits of resources is typically subject to capacity constraints which necessitate the working of differently fertile mines side by side and which imply that the classical theory of differential rent applies. Hotelling on the other hand assumed that the amount of the resource that can be extracted in a given period of time is only constrained by the amount of it left over from the preceding period; his emphasis was therefore on royalties and not differential rent. A model is then elaborated which brings together the insights of both authors and allows one to trace relative prices and income distribution over time.

Suggested Citation

  • Heinz D. Kurz & Neri Salvadori, 2009. "On the Theory of Exhaustible Resources: Ricardo vs. Hotelling," ISER Discussion Paper 0756, Institute of Social and Economic Research, Osaka University.
    • Handle: RePEc:dpr:wpaper:0756
    as

    Download full text from publisher

    File URL: https://www.iser.osaka-u.ac.jp/library/dp/2009/DP0756.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fadhila Achmadi Rosyid & Tsuyoshi Adachi, 2016. "Coal mining in Indonesia: forecasting by the growth curve method," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 29(2), pages 71-85, December.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dpr:wpaper:0756. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Librarian (email available below). General contact details of provider: https://edirc.repec.org/data/isosujp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.